China has gone through an official crackdown on Bitcoin; however unofficially chinese investors are still very bullish. Bitcoin has outperformed every other investment over the past five years and China clearly wants to be very much a part of it. OKCoin, China’s largest exchange by trading volume, has announced a $10 Million trading round. The $10 Million was put together initially by Ceyuan, a venture capitalist specialising in early investments as well as Mandra Capital, another growth and development stage investor, and VenturesLab, yet another early investor. These high profile capitalists encouraged other small investors on board and this has led to the successful ‘Series A’ funding round. Regardless of any official crackdown on cryptocurrencies in China it is clear that the chinese market is very much committed to Bitcoin and is determined to be a part of its future. That’s the thing about money, if people agree what constitutes money then values agreements and transactions become secondary; people have accepted tokens, shells, stones and even, in recent times, pieces of printed paper as legal tender, so the official position regarding a currency is often forced to yield to the observable reality.
Last November, when Bitcoin was at, or approaching, its 2013 peak value, all the focus of Bitcoin was on China, the world’s largest potential market, and back then BTC China was the largest trading exchange worldwide, this in turn has made China the world’s bitcoin trading hub. BTC raised a $5 Million ‘Series A’ funding round via Lightspeed Venture Partners and Btc’s future seemed secure. The following month, Decemer, changed everything; China begn to regulate Bitcoin and Bitcoin transactions, and as a result, investment funds fled the country reducing the status of BTC as the world’s largest exchange. Smaller local exchanges such as Huobi and OKCoin took up the proverial baton and have claimed trading figures surpassing those of BTC (Although these figures are somewhat disputed). The largest exchange in China is now OKCoin and, according to CEO, Star Xu, has a trading volume of 50,000 itcoins per day as well as 5 Million litecoins although these figures are also somewhat disputed.
Ceyuan, one of the largest chinese investment companies with investments in Xihoo 360 , VANCL, UC Web, and Light in the Box, has stated: “We are delighted to invest in the pioneer of China’s Bitcoin exchanges; given the company’s leadership under Star Xu and his team, we know there is much more good news ahead.”
The $10 Million investment is expected to fund corporate development, product research, enhanced security and also to help promote the company beyond China. It is anticipated that enhanced security levels will act to enhance the growth of the volume of trade outside of China. It is becoming apparent that, regardless of regulation, people are adapting to the use of cryptocurrencies and governments must make changes to follow suit. There exists a great fear of the unknown, of the unfamiliar, of the unmanageable and politicians are no different that anyone else. People make logical decisions, that is the basis of economics, how to spend, how to invest and how to behave; States have three options available to them in confronting new technology: either they allow, regulate, or act to prevent. China is the world’s most populus country with 1.35 illion people: If they lead, we must, as a community, be prepared to follow.Follow us on Telegram or subscribe to our newsletter here.
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